PAR Technology Reports 56.9% ARR Growth

By Tamara Parker • Thursday, August 08 08:03 • Permanent Link

Par Technology Corporation released their financial results for the second quarter ended June 30, 2024. The company reported annual recurring revenue (ARR) growth of 56.9%, reaching $192.2 million, inclusive of organic growth of 23.9% from the same period in 2023 when it was reported at $122.5 million.

Quarterly subscription service revenues increased by 47.7% year-over-year from Q2 2023. The company also completed the sale of Par Government Systems Corporation for $95.0 million and, after the period end, completed the sale of Rome Research Corporation for $7.0 million. Additionally, after the period end, Par completed the acquisition of Task Group Holdings Limited (“Task”), an Australia-based global foodservice transaction platform.

The CEO, Savneet Singh, highlighted that the company is tracking to hit its goal to be adjusted EBITDA positive next quarter. He emphasized that 2024 is an important year for the company and an inflection point, with the acquisition of Stuzo and Task enhancing their position as a leading provider of cloud-based technology solutions to enterprise foodservice organizations across the globe.

Financial highlights for Q2 2024 include:

Revenue: $78.2 million, up 12.4% from Q2 2023
Net loss from continuing operations: $23.6 million, worse by $1.7 million compared to Q2 2023
Diluted net loss per share from continuing operations: $(0.69), better by $0.11 compared to Q2 2023
Subscription service gross margin percentage: 53.1%, better by 9.8% compared to Q2 2023

Year-to-date 2024 financial highlights include:

Revenue: $148.2 million, up 7.3% from Q2 2023
Net loss from continuing operations: $44.0 million, worse by $3.1 million compared to Q2 2023
Diluted net loss per share from continuing operations: $(1.33), better by $0.16 compared to Q2 2023
Subscription service gross margin percentage: 52.4%, better by 5.8% compared to Q2 2023

The company also provided key performance indicators for its subscription service product lines, reporting ARR at the end of Q2 2024 totaling $107.9 million for engagement cloud and $84.2 million for operator cloud. Additionally, the number of active sites as of June 30, 2024, totaled 94.6 thousand restaurants for engagement cloud and 27.7 thousand restaurants for operator cloud.

The company will hold an earnings conference call on August 8, 2024, to discuss the financial results for the second quarter ended June 30, 2024. As a result of these announcements, the company's shares have moved -1.1% on the market, and are now trading at a price of $44.72. For more information, read the company's full 8-K submission here.

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